No surprises: another hike from the ECB

– On Thursday, the ECB announced a 75-bp interest rate hike, taking its benchmark deposit rate to 0.75%, aiming at ensuring “the timely return of inflation to the ECB’s 2% target”. Moreover, according to its statement, interest rates will increase further over the next months to face super-hot inflation.This move follows a 50-bp hike approved during the July meeting.

– With inflation hitting 9.1% in August, pushed by rising energy prices and exacerbated by the conflict in Ukraine, the ECB is ready to partially sacrifice growth in order to ease the pressure on prices.Finally, the Central Bank also published its new forecasts: the economy is expected to grow by 3.1% in 2022, then 0.9% and 1.9% in 2023 and 2024, respectively.

Source: CNBC